Feed-in Premium Programme SDE + (Stimulering Duurzame Energie +)

Country / jurisdiction: Netherlands · Year: 2011 · Status: In force · Level: National · Type: Voluntary

The Sustainable Energy Production Incentive Decision initiates a new system of feed-in premium allocation targeting renewable electricity and renewable gas projects. Support to renewable heat projects will follow, starting from 2012.

The SDE +, replacing the SDE scheme, falls under the Economic Affairs Grants Act and is implemented by the Agentschap NL.

The SDE + provides a feed-in premium (FIP) subsidy that covers the difference between wholesale market prices of electricity and the cost price of electricity from renewable sources. FIP contracts are signed for 15 years.

The SDE+ programme has years set budget and distributed on a 'first-come, first-served' basis prioritising low-cost technologies through a phase in the process. All categories compete for the same budget in order that only lower-cost technologies receive a substantial subsidy.

On a yearly basis government of Netherlands allocates budget for SDE+ programme. There is a single budget for all eligible technologies participating in the programme split in allocation rounds. Each round has previously given a maximum price. However, there is also a 'free category' in each round which technologies of higher cost range can apply for a lower subsidy level as they will be more likely to obtain some support, however, the base amount used in the calculation of the subsidy will be limited to the threshold of the category they apply to. This is intended to drive cost-reduction among the more expensive technology brackets and promote "technology leaders" with a more efficient cost-model.

Year

Budget

FIP allocation rules/changes

2011

EUR 1.5 bn

SDE+ replaces SDE and runs for the first time;

2012

EUR 1.7 bn

Number of allocation phases increased from four to five;

SDE+ opens for renewable heat and off-grid power generation;

Heat pumps, geothermal cogeneration and gasification are eligible for the support;

2013

EUR 3 bn

Renewable electricity, green gas and CHP production are eligible for the FIP support;

Different FIP tariffs were available for onshore wind plants based on  maximum eligible full load hours;

Single category created for all technology types of anaerobic digestion projects (including hubs);

2014

EUR 3.5 bn

Projects are not allowed to combine SDE+ support with Energy Investment Allowance;

Feasibility studies are not a requirement for project application for the SDE+ process;

A year after a feed-in premium contract allocation selected projects will have to show progress on a construction;

6 rounds of FIP allocation took place;

2015

EUR 3.5 bn

Different level of support for high and low wind areas;

Increase of tender phases from usual 6 to 9;

Projects co-firing biomass in coal power plants eligible to participate in the programme;

Turbine replacements for existing onshore plants eligible for the programme for the first time;

2016

Initially the budget was EUR 8 bn, however it was increased by EUR 1 bn in July 2016

Budget does not include Netherland’s spending for offshore wind support;

Renewable electricity, green gas and CHP production are eligible for the FIP support;

2 round of FIP allocation will be held in 2016. Maximum budget per allocation round for all technologies = ER 4 bn.

Each round opens in four cost-based phases, during which technologies can apply for the 'basic' price set for them or, if it is lower, the 'free category' price in each phase.

No subsidy will be paid for RE electricity when market will be experiencing negative prices for six or more hours. Exemption goes for small projects.

Solar PV projects of capacity grater then 500 kW will need to submit additional feasibility study papers when participating in the FIP programme.

2018

EUR 12 billion made available in two tranches

The first tranche was made available from March 13 to April 5 2018. The second tranche is expected to become available in autumn 2018.

Official source: http://www.agentschapnl.nl/sites/default/files/bijlagen/Maak%20kennis%20met%20de%20SDE%202012.pdf